Stocks Down Slightly At Closing As Worst Week Since 2011 Ends
NEW YORK (CBSNewYork/AP) -- The U.S. stock market closed out its worst week since 2011 on Friday, rattled by concerns over a slowdown in China's economy and plunging oil prices.
As the markets closed, the Dow Jones industrial average lost 167 points, or 1 percent, to 16,346.
The Standard & Poor's 500 index fell 21 points, or 1.1 percent, to 1,922. The Nasdaq gave up 45 points, or 1 percent, to 4,643.
Energy stocks were among the biggest decliners again on Friday as the price of oil sank. Crude is trading just below $34 a barrel, its lowest price since early 2004.
Earlier in the day Friday, stocks had gained on a better-than-expected jobs report, CBS2's Andrea Grymes reported. Employers added 292,000 jobs in December. The unemployment rate remained at 5 percent.
Investors had hoped hoping for a turnaround following huge losses throughout the week, . CBS News business analyst Jill Schlesinger said U.S. investors should stay calm and stay the course despite the chaos.
"If you are a long term investor, the best strategy is to stick to your game plan," she said. "That means don't do anything. No panicking, no emotions, jumping in."
Thursday had marked the worst drop for the market in three months. The Dow fell nearly 400 points on Thursday driven in large part by chaos in the Chinese market.
"It's just that sense of, 'Oh my God, what's really going on?'" said Peter Tuchman of Quattro Securities.
A 7-percent decline Thursday prompted exchanges in China to close down for the second time this week, less than a half hour after opening. Authorities quickly realized the shut down may have triggered more panic, so they reversed course.
"They suddenly realized this is not a great idea," said Tuchman. "This market is way too volatile, so they rescinded the whole policy."
Several factors are playing into China's economic problems, including a manufacturing slowdown, a labor shortage and the devaluing of the country's currency. It's all sending ripple effects throughout the world.
"China was the main driver of global growth for most of the last decade," said Tim Anderson of TJM Investments.
Despite the concern in the U.S., some experts say it's too soon to draw big conclusions about the future of the markets.
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